Energy Consumption Patterns, Environmental Sustainability and Human Development Outcomes in Iran

Document Type : Original Research

Authors
1 Associate Professor of Agricultural Economics, Department of Agricultural Economics, School of Agriculture, Shiraz University, Shiraz, Iran.
2 Assistant Professor, Economic, Social and Extension Research Department, West Azerbaijan Agricultural and Natural Resources Research and Education Center (AREEO), Urmia, Iran.
3 Ph. D. of Agricultural Economics, Department of Agricultural Economics, School of Agriculture, Shiraz University, Shiraz, Iran.
Abstract
A major goal of this study is to document how renewable and non-renewable energy consumption is related to human development in Iran. For this purpose, all variables were tested for structural breaks using the breakpoint unit root test. Additionally, long-run relationships are examined using the Auto-Regressive Distributed Lag (ARDL) bounds test. The outcomes of the diagnostic tests showed that the panel ARDL model parameters were stable, predictable, and reliable in the long term. Significant positive and negative relationships were found between renewable and non-renewable energy consumption and the Human Development Index (HDI), respectively. Additionally, the elasticity of renewable energy consumption is lower than that of non-renewable energy consumption. Human development in Iran has also been enhanced by CO2 emissions. Conversely, economic growth and increased trade transparency would lower the HDI in Iran. To improve human development in Iran, energy consumption as well as clean energy production and consumption should be considered.

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Articles in Press, Accepted Manuscript
Available Online from 01 January 2024